Many property buyers may be concerned about hiring a buyer agent. You should know why need to hire a buyer agent and what you should expect. I collected some common questions and answers here and will keep this list updated.
Q: Who is the buyer's agent?
A: A buyer's agent – or buyer's advocate – is a property-buying professional who specialises in searching for, scoping out and evaluating properties, as well as negotiating or bidding at auction on your behalf.
Q: Does the buyer agent get paid?
A: A buyer's agent is paid on a fee for service basis. You will pay for their expertise and advice.
Q: What is the buyer's agent fee?
A: It's calculated as a percentage of the property sale price. The REIA notes the industry standard for a Success fee is between 1-3% of the property sale price.
Q: Who pays for the buyer agent?
A: The short answer is that the buyer pays the buyer's agent their fees or commission. These fees are generally around 1% to 3% of the property's purchase price.
Q: Is buyer agent fees tax deductible?
A: The short answer is no; when buying an investment property, your buyer's agent fees are not a claimable expense. This means they cannot be used to reduce your taxable income for the year you buy the property.
Q: Is the buyer's agent fee negotiable?
A: Buyer's agents may charge a fixed fee or a percentage of the purchase price. You can negotiate this price as it is not set by law.
Q: Do I need a buyer's agent?
A: A professional buyer's agent is experienced in appraising property and negotiating the best possible price and terms on their client's behalf. Having an experienced and independent buyer's agent in your corner can also remove the emotion from the purchase.
Q: Are buyer agents worth it?
A: Yes, a buyer's agent can save you money. It's not guaranteed, but their insider knowledge and expert negotiation skills can prove to be helpful. If you want to be strict with your budget, you can inform your agent, and they'll eliminate potentially higher-priced properties from their search.
Q: What is the buyer's agent job description?
A:
- General property advisory, including locating, assessing and shortlisting properties meeting your search criteria
- Guiding first-home buyers or property investors through the purchase process
- Sourcing and shortlisting properties for buyers
- Viewing properties in person for/with buyers
- Arranging building inspections, including pest and strata reports
- Communicating and negotiating with sellers and their legal team
- Bidding at auction for buyers
- Checking final sale contracts and following up on the final sale process
Q: Can the buyer agent contact the seller directly?
A: YES, but only under certain conditions. The purpose of the agency is to act for its principals, not on behalf of the other principals.
Q: Can the buyer agent contact the appraiser?
A: Yes! Regulations allow real estate agents, or other persons with an interest in the real estate transaction, to communicate with the appraiser and provide additional property information, including a copy of the sales contract. A Buyers' Agent has no control or influence on a formal valuation.
Q: Does the buyer agent attend appraisal
A: A Buyers' Agent can attend a valuation (normally performed by the bank for finance), however, there is no requirement for this as the valuer will be doing their own independent valuation on the property.
Q: Does the buyer's agent attend the auction?
A: A buyer's agent can help bid and negotiate for you at an auction bidding. Bidding at an auction can be intimidating as well as emotionally daunting. A buyer's agent will support you during the auction and negotiation process.
Q: Can I buy a house without a buyer's agent?
A: There's no legal requirement that you have to use a real estate agent to buy or sell.
Q: Can a buyer agency be a seller agency?
A: Dual agency is when a real estate agent represents both the buyer and the seller. Dual agency is very rare as it's extremely difficult to promote the best interests of both parties during a property transaction.
Q: Can an agent represent both seller and buyer
A: By law, an agent cannot act for (and accept a commission from) both parties in the transaction.
Q: Buyer Agent vs Seller Agent or Listing Agent
A: The most basic difference between the buyer's and seller's agents is that they represent opposite interests. The buyer's agent is responsible for making sure the buyer gets the best deal possible and the seller's agent does the same for the seller.
Q: How to avoid buyer agent commission?
A: If you already have a property and have the plan to upsize or downsize, you can sell your property on directhomeseeling.com and save at least 3 per cent on seller agent commission then you can hire a buyer agent to find you the best possible property with around 2% commission.
Q: Is social media a good place to find experienced buyer agents?
A: Anyone can be swayed by big talk, on Instagram or TikTalk but never let words get in the way of your success. Compare buyer agents on buyeragentfinder.com.au
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